Gov. Mike Pence (R-Ind.) signed the ABC-led repeal of common construction wage into law May 6, eliminating prevailing wage requirements for publicly-funded construction projects in Indiana effective July 1. The ABC Indiana/Kentucky chapter played a significant role in ensuring the state understood the negative effects the legislation has on taxpayers, helping to make Indiana the 19th state with no prevailing wage requirements on taxpayer-funded construction.
The chapter outlined the top five reasons they supported the repeal of the 80-year-old law.
- It would save taxpayers money
- It would allow for more competition within the industry, supporting the free market
- It would eliminate government-mandated construction wages
- It would allow the state, local government and schools to use their public works dollars more efficiently and effectively for taxpayers
- It would remove the administrative costs and burdens of conducting and regulating the wage hearing process.
ABC Indiana/Kentucky opposed the Common Construction Wage law
because it forced taxpayers to pay artificially high wages for publicly funded projects, averaging 10 to 20 percent more for publically funded construction compared to private sector construction. By eliminating the law, taxpayer’s hard-earned money will go farther, increasing its value.